Deutsche Bank: Apple TV Will Cannibalize a Good Chunk of the DVD Market

May.31.07 | About: Apple Inc. (AAPL)

Apple Inc. (NASDAQ:AAPL) will cannibalize a good chunk of the US$26-billion DVD player market in the next several years, according to Deutsche Bank. One of the primary drivers of this change will be the availability of YouTube content on Apple TV.

In the long term, the firm thinks Apple is “positioned to introduce a compelling integrated home media infrastructure solution,” while the YouTube addition is expected to increase the appeal of Apple TV to users.

“We expect Apple to continue adding video content (TV, movies, etc) to iTunes/Apple TV further increasing its appeal,” Deutsche Bank said in a note to clients.

The firm has a “buy” rating on the stock, while its US$140 price target represents upside of roughly 15%.